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In a significant move by the Ghana Revenue Authority (GRA), the Sol Cement manufacturing company, situated in Tema, Greater Accra Region, has been temporarily closed down due to an outstanding tax liability amounting to GH¢709 million.
The Compliance and Enforcement Unit of GRA, led by Joseph Annan, Assistant Commissioner in charge of compliance at the Accra Central Area Office, took action on Monday, October 23, 2023, sealing off the Sol Cement factory premises. This decision was prompted by the company’s failure to make payments totaling GH¢709,686,828.35, which covered the period from 2019 to 2022.
Mr. Annan clarified that this enforcement action followed an extensive audit, which identified a substantial tax liability encompassing various types of taxes, interests, and penalties. Despite attempts to engage the company through internal processes and the issuance of notices, the company, though responding with objections, failed to meet the necessary requirements. Consequently, the Domestic Tax Revenue Division authorized the closure of the facility.
The Ghana Revenue Authority has indicated that the company will be given a grace period to settle the debt. However, in the event of failure to comply, the GRA will resort to distress actions, including an auction, to recover the outstanding funds owed to the state.
It’s worth noting that the lawyers representing Sol Cement initiated discussions on behalf of the company’s management upon the arrival of the enforcement team at the factory. Nonetheless, further discussions were directed to the GRA’s Head Office to address this serious tax default issue. The closure of the Sol Cement factory underscores the Ghana Revenue Authority’s commitment to upholding tax compliance and enforcing tax regulations across the country.
